5 Stocks Spiking on Big Volume - views

Delafield, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Berry Plastics (BERY) is a provider of value-added plastic consumer packaging and engineered materials with a 30-year track record of delivering high-quality customized solutions to its customers. This stock closed up 2.8% at $22.69 on Monday.

From a technical perspective, BERY bounced higher here right above some near-term support at $21.84 with above-average volume. This stock recently formed a double bottom chart pattern at $21.93 to $21.84 after pulling back from its recent high of $24.27. Shares of BERY are now starting to move within range of triggering a near-term breakout trade. That trade will hit if BERY manages to take out some near-term overhead resistance at $23.50 to its all-time high at $24.27.

Traders should now look for long-biased trades in BERY as long as it's trending above some near-term support at $21.84 or above its 50-day at $21.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 655,839 shares. If that breakout triggers soon, then BERY will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $28 to $30, or even north of $30.

Tower International

Tower International (TOWR) is a manufacturer of engineered structural metal components and assemblies primarily serving automotive OEMs. This stock closed up 2.7% at $20.34 on Monday.

From a technical perspective, TOWR trended higher here right above its 50-day moving average of $18.66 with above-average volume. This move is quickly pushing the stock within range of triggering a major breakout trade. That trade will hit if TOWR manages to take out its all-time high of $21.25 with high volume.

Traders should now look for long-biased trades in TOWR as long as it's trending above its 50-day at $18.66 and then once it sustains a move or close above its all-time high at $21.25 with volume that hits near or above 80,453 shares. If that breakout triggers soon, then TOWR will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30.

From a technical perspective, APH bounced modestly higher today right above its 50-day moving average at $77.62 with above-average volume. This stock has been trending sideways for the last month and change, with shares moving between $74.88 on the downside and $79.68 on the upside. This bounce on Monday is now starting to push shares of APH within range of triggering a near-term breakout trade above the upper-end of its recent range. That breakout will hit if APH manages to take out some near-term overhead resistance levels at $79.52 to $79.68 with high volume.

Traders should now look for long-biased trades in APH as long as it's trending above its 50-day at $77.62 and then once it sustains a move or close above those breakout levels with volume that hits near or above 642,455 shares. If that breakout triggers soon, then APH will set up to re-test or possibly take out its 52-week high at $83.37.

Sothebys

Sothebys (BID) is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles. This stock closed up 1.4% at $38.47 on Monday.

From a technical perspective, BID spiked modestly higher here right above some near-term support at $37 and above its 50-day moving average at $36.75 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $32.95 to its recent high of $39.60. During that move, shares of BID have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BID within range of triggering a near-term breakout trade. That trade will hit if BID manages to take out some key overhead resistance levels at $36.90 to its 52-week high at $40.49 with high volume.

Traders should now look for long-biased trades in BID as long as it's trending above its 50-day at $36.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.22 million shares. If that breakout triggers soon, then BID will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $45 to $48.

Cedar Fair

Cedar Fair (FUN), a regional amusement park operator, owns eleven amusement parks, six outdoor water parks, one indoor water park and five hotels. This stock closed up 1.4% at $42 on Monday.

From a technical perspective, FUN bounced modestly higher here right off its 50-day moving average at $41.23 with above-average volume. This move also pushed shares of FUN into breakout territory, since the stock took out some near-term overhead resistance at $41.60. Shares of FUN are now starting to move within range of triggering another major breakout trade. That trade will hit if FUN manages to take out its next key overhead resistance levels at $43.61 to its 52-week high at $44.29 with high volume.

Traders should now look for long-biased trades in FUN as long as it's trending above its 50-day at $41.23, and then once it sustains a move or close above those breakout levels with volume that this near or above 195,866 shares. If that breakout triggers soon, then FUN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $50 to $53.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.